Gold is the ultimate ‘anti-bubble’ amid falling bond yields

However, despite the dramatic outlook, Parrilla says this scenario could be sidestepped should the U.S. and other major central banks manage to execute a smooth normalization of monetary policy.

As the extended period of abnormal monetary policy continues and equity and bond valuations approach record levels, calls have mounted in recent months for lawmakers to do more to support central banks with fiscal levers. Monetary policymakers are viewed as having done much of the heavy lifting to keep the global economy afloat in recent years and ECB (European Central Bank) President Mario Draghi has been among the key voices highlighting the unsustainability of central banks maintaining such a burden.

Gold was trading down again in Thursday’s session with the precious metal tracking lows not seen since late June. This as investors await U.S. non-farm payrolls data on Friday for the latest gauge on U.S. economic activity and its effect on the market’s perceived likelihood of a Federal Reserve rate hike in December.

According to Parrilla, while there may be a further slide ahead, it could make sense for some investors to buy now, depending on their investing time horizon.

“I think it may well be this is the point to step in but with the perspective that this is a long-term trade,” he said.

“Who knows what’s going to happen in the short-run. You have to have a long-term perspective in gold.”